Rethinking applications management

Applications are more complex than ever. Aging systems, the emergence of new technologies, and years of adding applications and overlapping functionality have only added to the problem. However, organizations can create and sustain a healthier set of applications by rethinking how they manage portfolios and by adopting a systematic approach that balances the maintenance-to-innovation ratio mix.

Companies can employ two portfolio management techniques to support this new way of thinking about applications — implementation of a dynamic service delivery structure and use of data-driven portfolio management methods. Dynamic service delivery includes underlying methods and tools to optimize costs and enable business change. Data-driven portfolio management implements an ongoing process for collecting data, analyzing metrics and identifying improvement opportunities.

Portfolios that have not undergone transformation activity need techniques like this to identify areas that are ripe for change, while providing a mechanism to adapt to evolving business demands. For portfolios that have already undergone transformation, these steps enable IT to proactively monitor the portfolio’s health, and easily align and adjust support levels to meet changing business requirements.

For example, one company was experiencing significant growth and leadership changes with three CIOs in five years and stringent limits on its IT budget. This dynamic environment, coupled with associated IT philosophy changes, presented the challenge of rapidly adjusting IT spend without impacting service. Our applications management model enabled the organization to quickly and easily reprioritize dollars to preserve current spending levels, while realizing improved quality performance and business service levels.

To prepare for implementation of dynamic application service delivery, another company worked with DXC Technology to analyze, inventory and classify all enterprise applications. This evaluation process revealed previously unrecognized business applications, which were driving hidden IT costs. This discovery led to business value discussions and new rationalization strategies, a process that ultimately reduced the company’s overall maintenance spend.

When used correctly, these techniques and methods enable organizations to effectively and continually balance the maintenance-to-innovation ratio. By doing that, CIOs better control their portfolios, optimize costs, and accelerate positive change.